goldenBear88

After yesterday's Profits / Buying every dip strategy

Long
TVC:GOLD   CFDs on Gold (US$ / OZ)
Bond notes panic continues as Investors (as usual) use Gold as a Safe-haven. Final Resistance got compromised and since Gold closed the market hours above it, it was strong sign of Bullish continuation. Personally, while RSI showing indecision and Stock market soaring, I doubt that Gold will stop rising on current configuration. Friday's Gap is filled, Daily chart got the necessary Technical correction as I should be seeing a continuation of the uptrend back towards the #1,940.80, as I will use every dip opportunity to Buy Gold. Gold would be ready for a Selling correction and that would be on any other occasion however as due to the Election speculations and panic, market is not under normal conditions. This is obvious as Stock markets are Trading on Bullish Gap to yet another High and Bond notes are on a spiral downtrend. This adds more Buying pressure on Gold on Short-term. In my opinion Stock markets are they key, if they extend their recovery (and DX makes its first Bearish Daily candle) Gold will follow it’s Fundamental Bullish course towards #1,940.80. Otherwise it will have to be postponed until next week. Stock markets again reversed yesterday (# +2.15%) and it is no surprise that current setup is pushing Gold (# +0.96%) higher, Buying every dip towards #1,930.80 - #1,940.80. No doubt that Gold is also affected by the effect of DX policy remarks, testing the #93.00 Support (# -0.35%) and correlation standpoint will be visible from today’s U.S. session. Not surprisingly, yesterday’s strong Bullish DX developments, which were later sold, didn’t had any high impact on Gold. This tight balance keeps the Hourly 4 Channel Up valid in High Volatility belt as I am keeping #1,920.80 as next Lower High. I have noted that Gold Traders will witness current Volatility until Election announcement and then, by my analysis I expect further downturn and #1,880.70 test. My analysis is based on spot prices and I can point out with certainty that those Gold moves that I am witnessing right now are sign of how unstable market has become. While the threat of further Buying on the Weekly timeframe is still there, Swing Traders may be interested in a Buying dips strategy and utilizing this Bullish momentum from below September’s opening level on the Hourly 4 configuration. One could Profit from this Bullish market (entry/risk levels can be decided according to this breakout candle if the variance allows), aligning with Daily fluctuation pushing Gold upwards from noted Supply-Demand zone, as this could be the ideal session to do so (Buying the dips).

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